Iran's oil minister resigns as war squeezes exports
Iran's oil minister, Mohsen Paknejad, resigned on Sunday, and state media gave personal reasons. The head of Iran's national oil company, Hamid Bovard, was named acting minister. The change comes as a U.S. naval blockade and attacks near Hormuz squeeze Iran's main source of money.
Iran's top oil official has stepped down in the middle of a war that has hit the country's oil industry hard. Oil Minister Mohsen Paknejad resigned on Sunday, Al-Monitor and The Straits Times reported. Iranian state media cited personal reasons. The Straits Times said no reason was given officially.
President Masoud Pezeshkian named Hamid Bovard, the chief executive of the National Iranian Oil Company, as acting minister, according to Anadolu Agency. Bovard has run the state company that pumps and sells most of Iran's crude.
The timing raises questions. The United States has blockaded Iranian ports as part of the war that began in late February. Oil is Iran's biggest export and a key source of government money, so the blockade and attacks on shipping have squeezed the budget. Iran says the Strait of Hormuz will not reopen to normal traffic until the U.S. meets seven conditions, including ending the blockade.
Paknejad took office in 2024, when Pezeshkian formed his government. He worked to keep exports flowing to China, Iran's biggest customer, despite U.S. sanctions.
Some background: Iran holds some of the world's largest oil reserves, but sanctions and years of underinvestment have limited how much it can produce. Since the U.S. blockade began, Iran's crude exports have fallen to near zero, according to the tracking firm Kpler.
Iran is an OPEC member but is exempt from the group's output quotas because of sanctions. A separate OPEC+ group of seven producers agreed Sunday to keep November targets steady.
Leadership changes in Iran's oil ministry rarely change policy on their own. Big decisions on oil and the war rest with the supreme leader and security officials.
What we know: Paknejad resigned Sunday, and Bovard is acting minister.
What we don't: The real reason for the resignation, and whether Bovard will be named permanently.
Where outlets agree Al-Monitor, The Straits Times and Anadolu Agency all report that Iran's oil minister resigned Sunday and that Hamid Bovard was named acting minister.
Where they differ Iranian state media cite personal reasons, while outside analysts note the resignation comes as the war and blockade hit oil revenue.